Admin Report No. 0049, 2016

Frequently Asked Questions

Why is the City doing another boundary extension?

Answer:

The City has been considering a boundary extension on the east side since 2007. This current proposal was initiated by property owners sending petitions and letters requesting incorporation to the City.

What is the rationale for the proposed boundaries?

The City has a number of key reasons for considering the proposed boundary extension including the following challenges facing the City:

Fringe area development (within the Regional District) is placing additional pressures on the City.

Growth in the fringe area is developed to rural standards however, the City has regulatory tools to ensure that development is established to a higher level urban standard.

Some property owners have requested incorporation.

Expansion will address the continued need for vacant industrial and residential land to manage growth.

Why isn’t the City making the property owners who have vacant land develop it?

Answer:

Infill (vacant lots) has been identified as one the solutions to address the need for land. A significant challenge to infilling is that there are property owners who don’t want to develop their land and don’t want to sell it. The City can’t force a property owner to sell or develop their land.

What did the last boundary extension cost the City?

Answer:

The last extension which was completed on September 5, 2014 cost the City $79,955.83 in 2013 and $26,075.50 in 2014 for a total of $106,031.33 for an expansion that included 347.17 hectares.

How much land can be included in a boundary extension?

Answer:

The Ministry of Community, Sport and Cultural Development, who receives the application at the end of the process, has guidelines that municipalities must follow for a boundary extension. The Ministry’s suggestion with any extension is that it squares up irregular boundaries. Lessons learned from the 2013 boundary extension, we now know that this isn’t always achievable.

Consent from at least 75% of the property owners is a guideline the City used in past applications although it can vary.

The Ministry’s requirements are:

Full parcels must be included in an extension – there can’t be a line in the middle of a parcel that results in half City half Regional District jurisdiction.

Blocks of land must be done at once rather than submitting applications for a single parcel since this creates a large workload.

Properties need to be touching the City’s boundaries and there can’t be “doughnut holes” which means that City properties cannot completely surround a PRRD property

There are also regional land use planning documents that provide a vision for future growth and these include the Fort St. John and Area Comprehensive Plan and the North Peace Fringe Area Official Community Plan Bylaw No. 1870, 2009 (NPFA). The NPFA Bylaw is currently under review by the Peace River Regional District due to the growth pressures in the rural area.

What are the criteria for considering a boundary extension?

Answer:

The City developed a series of guiding principles associated with boundary extensions. These principles are as follows:

Undeveloped land is preferable to developed property due to servicing logistics

Cost and ability to service parcels are paramount – the City does not wish to take on parcels that are difficult or very costly to service.

Lands proposed for boundary extension must be located beside the City’s existing boarder.

Land proposed for boundary extension must be able to accommodate future growth as well as foster a good growth pattern.

The lands must protect the strategic interests of the City in terms of future growth and development.

City Council recognizes that the region is the economic driver for the Province and there are a number of mega projects proposed in the next 10 years that will increase growth. The growth that is anticipated to come with these projects is exciting. But it needs to be planned and managed responsibility to make sure that our children and grandchildren have a solid community that is financially sustainable in the future.

What is the total number of properties involved in this proposed extension?

Answer:

123

What is the total number of property owners?

Answer:

83

Why doesn’t the extension include additional land on the east to square the boundaries up?

Answer:

Staff will be completing an analysis using the 50 Year Growth Plan to develop policies and procedures for Council’s consideration on boundary extensions of a larger magnitude. There were some property owners who requested incorporation that are not included in this proposal and will be considered as part of a larger extension.

Has the 80% infill of specific land use designations occurred as indicated in the City’s Official Community Plan? Or what percentage of infill has occurred? What is the proposed use and what is the vacancy rate for existing buildings?

Answer:

The City’s Official Community Plan states that “any proposed extension may only occur if 80% infill of specific land designated under the Land Use Map has occurred and it can be illustrated that there is a vacancy rate of less than 5% within existing buildings for the proposed use.”

The City received an updated vacant and underutilized land study in July 2014. The study showed that there is 25.2% vacant light industrial land and 19.6% vacant heavy industrial land available within the City. The vacancy rate of existing buildings was not part of this study.

There is a challenge finding suitably sized existing industrial buildings with adequate land for companies wishing to locate in the City and many would rather build than try to retrofit an existing building to suit their needs.

What are the benefits of being included in the City? What benefits can rural property owners expect?

Answer:

There are a number of benefits that property owners can receive once included in City boundary.

Property owners newly incorporated into the City have the ability to access water and sewer services. Council has a long standing policy that it will not provide water and sewer services outside its boundaries.

Your property will see an increase in assessed value since the ability to access services makes your property more valuable.

Property owners are likely to receive a reduction in their property insurance premiums because there is a full time Fire Department:

Within 300 m (1,000 feet) of a fire hydrant (referred to as “Protected”)

Within 13 km (8 miles) of a responding Fire Hall (referred to as “Semi-Protected”) and

The Federal Government implemented stricter sewer regulations for septic tanks, fields, lagoons effective January 1, 2014 and it is anticipated that stricter water regulations for groundwater wells may be next.

Residential garbage and recycling collection can be provided at a cost of $120.00 per year. Rural residential property owners rely on garbage dumpsters which cost an estimated $57 per month.

Would bylaws apply retroactively (ie: building standards)?

Answer:

The City has a number of bylaws to address nuisances such as barking dogs and noise whereas the Regional District does not and all bylaws would come into effect at the time of incorporation.

The City’s Building Bylaw will be replaced by the Provincial Building Act in the next two years which will standardize building regulations throughout the Province and will be a requirement for all municipalities and regional districts.

How would the figures to compare to regional taxes, water/sewer and the utility connectivity plan?

Answer:

Property taxes are levied to raise the revenues necessary to pay for services received. The tax rate allocated to raise the necessary revenues depends on the assessment within a defined area that is applied to the various classes of property (such as industrial, residential, etc.).

Incorporating additional land into the City would result in changes to the assessment base and service provision costs, therefore, it is difficult to accurately calculate what your taxes would be. The City understands that taxes are a concern and individualized tax notices showing the comparison between rural and urban taxes with estimated amounts were delivered to Canada Post for mailing on January 15, 2016. This information will be helpful for the meeting scheduled on Wednesday, January 27.

Newly incorporated properties within City boundaries have the ability to connect to water and sewer if they pay the capital costs to extend these services to their property and will have on-going user fees. Council has had a long standing policy which states that water and sewer services will not be extended outside of City boundaries. Properties connected to water and sewer services are likely to see increased property values, as well as enhanced development potential.

In the rural area, the Surveyor of Taxes issues tax notices. Rural property taxes are paid to the Provincial Government. The taxes paid to the Provincial Government include taxes for the Ministries of Finance, Education and Justice. The Provincial Government also collects taxes on behalf of various other agencies including the Peace River Regional District, BC Assessment Authority and Peace River Hospital District. In addition to the taxes collected above, property owners are often responsible for additional service costs that are not part of the tax bill such as water hauling, sewage disposal, garbage collection and disposal.

Within the City, property taxes are paid to the City. The City also collects property taxes on behalf of a variety of other jurisdictions, such as the Peace River Regional District, Provincial Ministries of Finance and Education, BC Transit, BC Assessment Authority and Peace River Hospital District.

City Council adopted Boundary Extension Policy No. 129 that states taxes will be phased in over a five year period in recognition of the difference in taxes between rural and urban properties.

What are the water and sewer costs?

Answer:

In the rural area, the costs associated with hauling water and disposing sewage are the responsibility of each individual property owner and can vary. Previous studies have indicated that the cost of hauling water and disposing of sewage for the average rural residential property can range between $3,000 and $4,000 annually.

Within the City, the costs for water as of January 1, 2016 are as follows:

For all metered properties:

A fixed monthly charge of $13.00 will be allocated to each water utility account

A consumption charge of $1.44 per cubic metre

Unmetered properties:

Residential: $75.00 per month for water and $75.00 per month for sewer

Commercial: $250.00 per month for water and $250.00 per month for sewer

Industrial: $250.00 per month for water and $250.00 per month for sewer

Other charges may apply, such as connection/equipment/installation charges, etc.

Regardless of local government jurisdiction the expense of new water and sewer infrastructure is borne by the affected property owner. Thus, this infrastructure cost will not be borne by City taxpayers to newly incorporated areas. The City will apply for any government grants that are available to offset large infrastructure projects to reduce the cost to the affected taxpayers.

Rural properties that utilize the City’s bulk water station and the PRRD sewer transfer station will be reimbursed the difference between the City and rural cubic metre rate. This request for reimbursement can be submitted to the City’s Finance Department on a semi-annual basis. The City will not reimburse for truck hauling costs.

Once water and sewer connection is available to the property owner, this reimbursement will no longer be valid.

The City acknowledges that water services could be provided by the Peace River Regional District in the near future for its rural residents.

Why consider incorporating potential residential lands since residential is a low mill rate which means the taxes generated won’t even help the City?

The objective of exploring boundary extension is not to help the City from a tax revenue perspective. While the City would receive additional revenue from applying tax rates to the assessed values of properties brought into its boundaries, it would also experience service costs for maintaining roads within the extension area which are currently the responsibility of the Ministry of Transportation.

Could the City have a tiered system?

Answer:

The City understands a “tiered tax rate system” to mean different tax rates for different levels of service and the City’s philosophy is to provide one consistent level of service. Should the proposed boundary extension proceed, all properties within the boundary extension area would receive the same level of service as the rest of the City. Thus, a tiered tax rate system would not be necessary.

It should be highlighted that water and sewer services are a capital expenditure separate from tax rates. People who enjoy water and sewer services have paid the capital costs of the infrastructure and are also paying ongoing user fees.

Will the residents will get stuck with the bill through taxes just because the City is trying to acquire industrial land?

Answer:

The lands that the City is proposing for incorporation include Medium Density Rural Residential, Heavy Industrial, Light /Service Industrial and Agricultural zoned properties within Peace River Regional District.

Proposed inclusion of these lands into the City's boundaries are consistent with regional plans previously developed with the community and various stakeholders:

The Fort St. John and Area Comprehensive Development Plan developed in 2005—a joint strategy produced by the Peace River Regional District, the Agricultural Land Commission and the City of Fort St. John. This Plan identifies the proposed lands as being incorporated into the City's boundary as the need arises. A map can be found in Section 12 and details of the Plan can be obtained from the Peace River Regional District who can be contacted at (250) 784-3200.

The North Peace Fringe Area Official Community Plan developed in 2009—produced by the Peace River Regional District. This Plan also identifies the proposed lands to be incorporated into the City's boundary at a future date. A map can be found in Section 13 and the full Plan can be viewed here.

What will happen to the ALR land? Will the taxes will go up? If the people with ALR/farmland can’t afford the taxes will property then be turned into Industrial?

Answer:

The City passed a Council Resolution to amend its Class 9 tax rate ratio. The Council Resolution reads

"THAT, the Farm - Class 9 tax rate ratio be 0.3:1 ratio with the Class 1 tax rate that would be effective with the tax year beginning January 1, 2014."

This would result in owners of Class 9 (Farm) properties having a general tax rate portion of their property taxes remain very similar to the rural tax rate.

Whether or not a property is within the Agricultural Land Reserve does not have any bearing on their property taxes it is what the property is being used for.

Is there going to be any property rezoning?

Answer:

Council will be considering an amendment to their Boundary Extension Council Policy No. 129 at the November 23, 2015 Regular Council Meeting to include the following clarification regarding rezoning:

Newly incorporated properties will receive an OCP and zoning designation of “Agricultural” which is acknowledged as a placement land use.

Should the City identify a need to amend the land use for a property(ies) other than Agriculture, the City will initiate an OCP and Zoning Amendment process. City Planning staff will engage with each affected property owner individually to solicit comment on the suitable land use designation and zoning. Once determined, amending bylaws will be drafted for the Official Community Plan and Zoning Bylaws.

The property owner also has the ability to identify a need to amend the land use and can contact City Planning to initiate a discussion on suitable land use designation and zoning.

This first Official Community Plan and/or Zoning Amendment for a newly incorporated property will be at the City’s expense.

What is the plan with the land acquired?

Answer:

The City has no plans for the land acquired, as none of the lands within the proposed boundary extension area are owned by the City. In addition, the plans for the proposed boundary extension area are guided by the Fort St. John and Area Comprehensive Development Plan and the North Peace Fringe Area Official Community Plan Bylaw No. 1870, 2009.

What is known about the proposed developments for these lands being considered for boundary extension?

Answer:

The City is aware of a mixed residential/commercial development proposed for the 144 acres directly east of the Fort St. John Hospital.

Any other future developments that might occur within the proposed boundary extension area would be guided by the City’s applicable Official Community Plan and Zoning Bylaw.